We think perception demand stimulation is more revolutionary than evolutionary. Data can take you to Expectation but getting to Perception does imply, most times, there is no absolute data driving it. Creating the iPhone was not backed by typical customer data as Steve Jobs did not believe in surveys and focus groups. He did believe that even customers could not understand what they needed. But you give them the “next big thing”, they would come along.
My point is this: data has a limitation at the perception level. Verizon, a big telecom player in the U.S. is data-driven but still (initially) rejected Apple’s offer for it to carry the iPhone. (iPhone is a perception level product.) The second player behind it, AT&T, took a risk, as it had nothing to lose then. Simply, data cannot explain most things when you begin to operate at the perception level of market creation.
The key thing here is Awareness and Observation as having data on something which does not exist is hard. More so, extrapolation fails since to have perception, you have to do something that is not typical. That means extrapolating today for that future makes no sense.
Largely, perception is highly orthogonal, not parallel to what many market players are doing. That is why perception level products are disruptive as they typically lead to a new basis of competition.
In this introductory video, I discuss why organizations must focus on developing products and services that go beyond the needs of customers to their expectations and perceptions. Focusing on the needs of customers is a recipe for disaster. The whole desire must be to deliver products and services at the level of customer perception where they are offered products and services which they might not have even imagined would be possible. But the day they see the products they will say “wow”. This also explains the limitations of focus groups because focus groups are tethered to what the customers think they need. Perception of customer level service is offering something which could not have been requested during focus groups, because such products will not come into the imaginations of the people being studied.
There are other videos in Tekedia Mini-MBA Week 8 board, and a member asked this question: “Good day Prof, thanks for the lecture material on stimulating perception demand. It’s very insightful. Prof, could you please provide a real life example/use case of using O-data and X-data to stimulate perception demand, if such exists? Many thanks.” The above was my response.
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